New York: With the economy showing signs of recovery, American firms are looking to re-hire employees they laid off in the past, mainly in the
finance and manufacturing sectors, says a latest report.
According to a report by global career transition and coaching firm OI Partners, about 40% of employers are planning to re-hire some former workers they laid off as either full-time employees or as consultants and freelancers. The reason behind hiring former employees is that their skills are known to the employers and they consider former employees fit into the company's culture and environment.
The employers think that re-hiring a former employee is less risky than recruiting a new one, the report said.
It noted that nearly half of financial services firms surveyed are planning to recruit some laid-off employees, 47% of manufacturing companies and 42% of services companies plan to re-hire some laid-off workers.
"Financial services and manufacturing were among the industries affected most by the recession, and made the deepest workforce cutbacks. That is why they may be more ready than other sectors to re-hire some employees they had to let go," OI partners chairman Tim Schoonover said.
Apart from employers' confidence about an ex-employee, the other reason behind hiring is that there is shortage of experts in speciality areas such as information technology, marketing, and finance. On the other hand, government agencies and non-profit institutions are least likely to re-hire laid-off workers, followed by health care employers.
The report, which surveyed around 318 firms, said 37% of employers do not plan on re-hiring any laid-off workers, while 23% are not sure of their plans.
As business picks up, employers may first hire employees for temporary and project work before hiring full-time employees, and they are more willing to bring back laid-off workers as contractors or staff.
Bureau Report
First Published: Monday, September 28, 2009, 09:46